Petrolifera Petroleum Limited is a Calgary-based crude oil and natural gas exploration, development and production company active in South America. Petrolifera holds interests in approximately eight million acres of petroleum and natural gas rights in ten onshore concessions or licenses in Argentina, Colombia and Peru. The company's reserves and related production base is primarily located at the 100 percent owned and operated Puesto Morales/Rinconada Concession, Rio Negro Province, in the Neuquén Basin of Argentina. The company is currently drilling its first exploratory well on the 100 percent owned Sierra Nevada Concession in the Lower Magdalena Basin onshore Colombia. Prospective acreage is also held at Turpial and Magdalena, Colombia and in two large licenses under Block 106 in the Maranon Basin and under Block 107 in the Ucayali Basin. A third Peruvian license, Block 133, offsetting Block 107 to the west and containing approximately one million acres, is scheduled to be awarded in 2009. Growth has been organic to date and has been achievedthrough a consistent application of Petrolifera's enunciated strategies.

Petrolifera's goal in pursuing these strategies has an objective of building a substantial South American crude oil and natural gas producer through effective exploration, followed by profitable exploitation of discovered reserves and resources. Consistent with their strategy, Petrolifera recently announced the planned sale of the more-developed Argentina assets to repay debt and redeploy funds to their higher potential prospects in Colombia and Peru.

Petrolifera's growth strategy is to:

• Build a strong South American oil and gas producer
• Secure ground floor opportunities and operate with high working interests
• Secure a low-cost production base in areas of activity
• Balance program with risk-adjusted exposure to company-maker projects
• Capitalize on management's technical and deal-making expertise in selected areas
• Leverage ground floor opportunities to fuel growth and spread risk
• Capitalize on national expertise in branch offices